Ethereum Price Moving as London Update Nears
Developer puts August 4 as a tentative date for Hardfork 'London' rollout, though it may be delayed a week or two from that date.
Anthony Sassano commented via his Twitter account it is likely that the long-awaited fork with the EIP-1559 update for Ethereum will be discussed and announced on July 9, at the end of the week, during the mainnet developer meeting. He also revealed a tentative date for the implementation of the hard fork.
"I expect it to be August 4, but it could be delayed a week or two from that date, depending on various factors," the developer commented.
The next update for Ethereum has been one of the most anticipated in the Blockchain space this 2021. 'London,' which will go live as a hard fork, will foreshadow the implementation of the highly anticipated EIP-1559 modification that solves some of the problems associated with the Ethereum network's high transaction fees.
London will bring EIP-1559
The statement comes few weeks after developers rolled out the London update on the Ropsten testnet. The Ethereum update went live on June 24 at block height 10499401.
Notably, the London hard fork includes five proposed upgrades for the Ethereum network, with EIP-1559 being the most controversial and crucial. After being widely discussed, developers reached a consensus approving the proposal last March. EIP-1559 will introduce a dynamic fee structure and implements periodic fee burning.
Some have pointed out that the modification will make Ethereum a deflationary asset for the first time in its history. An aspect that some analysts speculate will be an impulse to a price increase for the second-largest cryptocurrency.
However, one of the most discussed and expected aspects of implementing such a proposal is reducing high transaction fees. While Ethereum transaction fees have come down from the all-time high of $70 (average) in mid-May, they are still too high for practical use, as well as for smaller transactions.
Although Ethereum software solutions provider ConsenSys has assured that London and EIP-1559 will not result in a massive reduction in gas rates.
The amount of ETH on exchanges falls to a low
The review on the arrival of the London update to the Ethereum network comes amid a bear market that has prompted a significant drop in the amount of ETH coins stored on exchanges.
According to CryptoQuant data, ETH stockpiles on centralized exchanges have seen a massive decline in recent days. Especially after the Ethereum price collapse in mid-May, investors rushed to deposit their tokens on trading platforms.
Amid a sustained price decline, the volume of ETH coins on exchanges has fallen to its lowest low in the past two and a half years. For prominent cryptocurrency trader and entrepreneur Willy Woo, such a factor may have two explanations, he noted on Twitter.
The first is that users withdraw Ethereum to lock it on various exchanges and DeFi apps, such as the Uniswap DeFi Token. The second reason, he believes, is that validators are staking their coins on the Ethereum 2.0 deposit contract.
Ethereum's staking implementation of a Proof of Stake consensus algorithm has become increasingly popular. It allows ETH holders to place their coins as collateral in the network's contract to generate long-term rewards. In recent months, the number of tokens sent to the ETH 2.0 contract has been rising.
Currently, according to the ETH2Validators account, a staggering 6,090,242 ETH (valued at $13.5 billion) has been locked into that contract.